Higher FICO, Lower Mortgage Payments
You already know that your FICO score directly affects your mortgage interest rate and, accordingly, your monthly mortgage payments. So it is important to continue repairing your credit history to improve your FICO score. The higher your FICO, the lower your payments!
What many people may not be paying attention to is how your mortgage loan amount can substantially affect your interest rate. Whether your loan amount lower or higher than the conforming loan limit makes quite a difference. The current conforming loan limit for a single family home is $417,000. The loans which are higher called Jumbo loans. So if you borrow $417,001, you have a Jumbo mortgage.
The following example of up-to-date mortgage rates (as of January 29, 2008) is taken from myFICO website. It clearly shows that, currently, the rates and monthly payments will increase dramatically simply by borrowing one extra thousand over the conforming limit. A loan with amount of $417,000 still enjoys low rates, while current rates for the Jumbo loans in are higher by a whopping over 1% margin.
Good credit scores save you money! And keeping your mortgage loan amount under the conforming limit saves you money as well.
Wed Jan 30, 2008 01:01PM | Copyright: www.bad-credit-advisor.com | More in Mortgage | Comments (0)
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